*** Transcriber's Note: Please set your voice synthesizer to read most punctuation. When you encounter the caret sign at the end of a line, please enter the applicable information, if necessary. *** T2125 E (09) (Page 1 of 5) Canada Revenue Agency Statement of Business or Professional Activities - For each business or profession, complete a separate Form T2125. - File each completed Form T2125 with your Income Tax and Benefit Return. - For more information on how to complete this form, see Guide T4002, Business and Professional Income. Identification Your name ^ Your social insurance number (enter 9 digits) ^ Business name ^ Business Number (enter 15 digits) ^ Business address ^ City, province or territory ^ Postal code ^ Fiscal period From: (Year/Month/Day) ^ To: (Year/Month/Day) ^ Was 2009 your last year of business? Yes or No. ^ Main product or service ^ Industry code (see the appendix in Guide T4002, Business and Professional Income) ^ Tax shelter identification number ^ Partnership filer identification number ^ Your percentage of the partnership ^ Name and address of person or firm preparing this form ^ Part 1 - Business income 2. If you have business income, tick (enter Yes) this box and complete this part. Do not complete parts 1 and 2 on the same form. ^ Line A: Sales, commissions, or fees ^ Minus Goods and services tax and provincial sales tax (GST and PST) or harmonized sales tax (HST) (if included in sales above) ^ Returns, allowances, and discounts (if included in sales above) ^ Line B: Total of the above two lines ^ Line C: Adjusted gross sales (line A minus line B) (enter this amount on line 8000 in Part 3 below) ^ Part 2 - Professional income 3. If you have professional income, tick (enter Yes) this box and complete this part. Do not complete parts 1 and 2 on the same form. ^ Line D: Professional fees (includes work-in-progress) ^ Minus Goods and services tax and provincial sales tax (GST and PST) or harmonized sales tax (HST) (if included in fees above) ^ Work-in-progress (WIP), end of the year, per election to exclude WIP (see Chapter 2 of the guide) ^ Line E: Total of the above two lines ^ Subtotal (line D minus line E) ^ Plus Work-in-progress (WIP), start of the year, per election to exclude WIP (see Chapter 2 of the guide) ^ Line F: Adjusted professional fees (total of the above two lines) (enter this amount on line 8000 in Part 3 below) = ^ Part 3 - Gross business or professional income Line G and line 8000: Adjusted gross sales (from line C in Part 1) or adjusted professional fees (from line F in Part 2) ^ Plus Line 8290: Reserves deducted last year ^ Line 8230: Other income ^ Line H: Total of the above two lines = ^ Line 8299: Gross business or professional income (line G plus line H) = ^ Enter this amount on the appropriate line of your income tax and benefit return: business on line 162, professional on line 164, or commission on line 166. T2125 E (09) (Page 2 of 5) Part 4 - Cost of goods sold and gross profit If you have business income, complete this part. Enter only the business part of the costs. Line I: Gross business income from line 8299 in Part 3 on page 1. ^ Line 8300: Opening inventory (include raw materials, goods in process, and finished goods) ^ Line 8320: Purchases during the year (net of returns, allowances, and discounts) ^ Line 8340: Direct wage costs ^ Line 8360: Subcontracts ^ Line 8450: Other costs ^ Total of the above five lines = ^ Minus Line 8500: Closing inventory (include raw materials, goods in process, and finished goods) ^ Line J and line 8518: Cost of goods sold = ^ Line 8519: Gross profit (line I minus line J) = ^ Part 5 - Net income (loss) before adjustments Line K: Gross profit from line 8519 in Part 4 above, or gross income from line 8299 in Part 3 on page 1. ^ Expenses (enter only the business part) Line 8521: Advertising ^ Line 8523: Meals and entertainment (allowable part only) ^ Line 8590: Bad debts ^ Line 8690: Insurance ^ Line 8710: Interest ^ Line 8760: Business tax, fees, licences, dues, memberships, and subscriptions ^ Line 8810: Office expenses ^ Line 8811: Supplies ^ Line 8860: Legal, accounting, and other professional fees ^ Line 8871: Management and administration fees ^ Line 8910: Rent ^ Line 8960: Maintenance and repairs ^ Line 9060: Salaries, wages, and benefits (including employer's contributions) ^ Line 9180: Property taxes ^ Line 9200: Travel (including transportation fees, accommodations, and allowable part of meals) ^ Line 9220: Telephone and utilities ^ Line 9224: Fuel costs (except for motor vehicles) ^ Line 9275: Delivery, freight, and express ^ Line 9281: Motor vehicle expenses (not including CCA) (see Chart A on page 5) ^ Line 9935: Allowance on eligible capital property ^ Line 9936: Capital cost allowance (CCA) (from Area A on page 4) ^ Line 9270: Other expenses (specify before entering amount) ^ Line 9368 and line L: Total business expenses (add lines 8521 to 9270) ^ Line 9369: Net income (loss) before adjustments (line K minus line L) ^ Part 6 - Your net income (loss) Line M: Your share of the amount on line 9369 in Part 5 above ^ Line N and line 9974: Plus: GST/HST rebate for partners received in the year (see Chapter 3) ^ Line O: Total (line M plus line N) ^ Line P and line 9943: Minus: Other amounts deductible from your share of net partnership income (loss) (from the chart on page 3) ^ Line Q: Net income (loss) after adjustments (line O minus line P) ^ Line R and line 9945: Minus: Business-use-of-home expenses (your share of line 3 from the chart on page 3) ^ Line 9946: Your net income (loss) (line O minus line R) ^ Enter this amount on the appropriate line of your income tax and benefit return: business on line 135, professional on line 137, or commission on line 139. T2125 E (09) (Page 3 of 5) Other amounts deductible from your share of net partnership income (loss) *** Transcriber's Note: Enter as many lines as necessary for the Claim expenses. *** Claim expenses you incurred that were not included in the partnership statement of income and expenses, and for which the partnership did not reimburse you. Line 1: ^ Line 2: ^ Other amounts deductible from your share of the partnership (total of the above lines) (enter this amount on line 9943, in Part 6 on page 2) ^ Calculation of business-use-of-home expenses Heat ^ Electricity ^ Insurance ^ Maintenance ^ Mortgage interest ^ Property taxes ^ Other expenses (specify before entering amount) ^ Subtotal ^ Minus: Personal use part ^ Subtotal (business-use-of-home expenses minus personal use part) ^ Plus: Capital cost allowance (business part only) ^ Amount carried forward from previous year ^ Line 1: Subtotal ^ Line 2: Minus: Net income (loss) after adjustments (from line Q in Part 6 on page 2) (if negative, enter "0") ^ Business-use-of-home expenses available to carry forward (line 1 minus line 2) (if negative, enter "0") ^ Line 3: Allowable Claim (the lesser of amount 1 or 2 above) (enter your share of this amount on line 9945 in Part 6) ^ Details of other partners Name and address ^ Share of net income or (loss) $ ^ Percentage of partnership ^ Name and address ^ Share of net income or (loss) $ ^ Percentage of partnership ^ Name and address ^ Share of net income or (loss) $ ^ Percentage of partnership ^ Details of equity Line 9931: Total business liabilities ^ Line 9932: Drawings in 2009 ^ Line 9933: Capital contributions in 2009 ^ T2125 E (09) (Page 4 of 5) *** Transcriber's Note: In print, Area A is in a columnar format of 10 columns with the possibility of 4 entry lines for each column. Enter as many lines as necessary for the following. *** Area A - Calculation of capital cost allowance (CCA) claim Line 1: Column 1: Class number ^ Column 2: Undepreciated capital cost (UCC) at the start of the year ^ Column 3: Cost of additions in the year (see areas B and C below) ^ Column 4: Proceeds of dispositions in the year (see areas D and E below) ^ Column 5*: UCC after additions and dispositions (column 2 plus column 3 minus column 4) ^ Column 6: Adjustment for current-year additions one-half multiplied by (column 3 minus column 4). If negative, enter "0". ^ Column 7: Base amount for CCA (column 5 minus column 6) ^ Column 8: Rate (%) ^ Column 9: CCA for the year (column 7 multiplied by column 8 or an adjusted amount) ^ Column 10: UCC at the end of the year (column 5 minus column 9) ^ Line 2: Column 1: Class number ^ Column 2: Undepreciated capital cost (UCC) at the start of the year ^ Column 3: Cost of additions in the year (see areas B and C below) ^ Column 4: Proceeds of dispositions in the year (see areas D and E below) ^ Column 5*: UCC after additions and dispositions (column 2 plus column 3 minus column 4) ^ Column 6: Adjustment for current-year additions one-half multiplied by (column 3 minus column 4). If negative, enter "0". ^ Column 7: Base amount for CCA (column 5 minus column 6) ^ Column 8: Rate (%) ^ Column 9: CCA for the year (column 7 multiplied by column 8 or an adjusted amount) ^ Column 10: UCC at the end of the year (column 5 minus column 9) ^ Total CCA claim for the year (enter this amount, minus any personal part and any CCA for business-use-of-home expenses, on line 9936 in Part 5 on page 2**) (add all the amounts in column 9) ^ * If you have a negative amount in this column, add it to income as a recapture on line 8230, "Other income," in Part 3 on page 1. If no property is left in the class and there is a positive amount in the column, deduct the amount from income as a terminal loss on line 9270, "Other expenses," in Part 5 on page 2. Recapture and terminal loss do not apply to a Class 10.1 property. For more information, see Chapter 4 of Guide T4002, Business and Professional Income. ** For information on CCA for "Calculation of business-use-of-home expenses" on page 3, see "Special Situations" in Chapter 4 of Guide T4002, Business and Professional Income. *** Transcriber's Note: In print, Areas B to E are in a columnar format of 5 columns with the possibility of 2 entry lines for each column. Enter as many lines as necessary for the following. *** Area B - Details of equipment additions in the year Line 1: Column 1: Class number ^ Column 2: Property details ^ Column 3: Total cost ^ Column 4: Personal part (if applicable) ^ Column 5: Business part (column 3 minus column 4) ^ Line 2: Column 1: Class number ^ Column 2: Property details ^ Column 3: Total cost ^ Column 4: Personal part (if applicable) ^ Column 5: Business part (column 3 minus column 4) ^ Line 9925: Total equipment additions in the year (add all the amounts in column 5) ^ Area C - Details of building additions in the year Line 1: Column 1: Class number ^ Column 2: Property details ^ Column 3: Total cost ^ Column 4: Personal part (if applicable) ^ Column 5: Business part (column 3 minus column 4) ^ Line 2: Column 1: Class number ^ Column 2: Property details ^ Column 3: Total cost ^ Column 4: Personal part (if applicable) ^ Column 5: Business part (column 3 minus column 4) ^ Line 9927: Total building additions in the year (add all the amounts in column 5) ^ Area D - Details of equipment dispositions in the year Line 1: Column 1: Class number ^ Column 2: Property details ^ Column 3: Proceeds of disposition (should not be more than the capital cost) ^ Column 4: Personal part (if applicable) ^ Column 5: Business part (column 3 minus column 4) ^ Line 2: Column 1: Class number ^ Column 2: Property details ^ Column 3: Proceeds of disposition (should not be more than the capital cost) ^ Column 4: Personal part (if applicable) ^ Column 5: Business part (column 3 minus column 4) ^ Line 9926: Total equipment dispositions in the year (add all the amounts in column 5) ^ Note: If you disposed of property from your business in the year, see Chapter 4 of Guide T4002, Business and Professional Income, for information about your proceeds of disposition. Area E - Details of building dispositions in the year Line 1: Column 1: Class number ^ Column 2: Property details ^ Column 3: Proceeds of disposition (should not be more than the capital cost) ^ Column 4: Personal part (if applicable) ^ Column 5: Business part (column 3 minus column 4) ^ Line 2: Column 1: Class number ^ Column 2: Property details ^ Column 3: Proceeds of disposition (should not be more than the capital cost) ^ Column 4: Personal part (if applicable) ^ Column 5: Business part (column 3 minus column 4) ^ Line 9928: Total building dispositions in the year (add all the amounts in column 5) ^ Note: If you disposed of property from your business in the year, see Chapter 4 of Guide T4002, Business and Professional Income, for information about your proceeds of disposition. Area F - Details of land additions and dispositions in the year Line 9923: Total cost of all land additions in the year ^ Line 9924: Total proceeds from all land dispositions in the year ^ Note: You cannot claim capital cost allowance on land. T2125 E (09) (Page 5 of 5) Chart A - Motor vehicle expenses Line 1: Enter the kilometres you drove in the tax year to earn business income ^ Line 2: Enter the total kilometres you drove in the tax year ^ Line 3: Fuel and oil ^ Line 4: Interest (see Chart B below) ^ Line 5: Insurance ^ Line 6: Licence and registration ^ Line 7: Maintenance and repairs ^ Line 8: Leasing (see Chart C below) ^ Line 9: Other expenses (specify before entering amount) ^ Line 10: Other expenses (specify before entering amount) ^ Line 11: Total motor vehicle expenses (add lines 3 to 10) ^ Line 12: Business use part: line 1: ^ divided by line 2: ^ = ^ multiplied by line 11: ^ = ^ Line 13: Business parking fees ^ Line 14: Supplementary business insurance ^ Allowable motor vehicle expenses (add lines 12, 13, and 14) (enter this amount on line 9281 in Part 5 on page 2) ^ Note: You can claim CCA on motor vehicles in Area A on page 4. Chart B - Available interest expense for passenger vehicles Line A: Total interest payable (accrual method) or paid (cash method) in the fiscal period ^ Line B: $10* multiplied by the number of days in the fiscal period for which interest was payable (accrual method) or paid (cash method) = ^ * For passenger vehicles bought from 2001 to 2009. Available interest expense (amount A or B, whichever is less) (enter this amount on line 4 of Chart A above) ^ Chart C - Eligible leasing costs for passenger vehicles Line 1: Total lease charges incurred in your 2009 fiscal period for the vehicle ^ Line 2: Total lease payments deducted before your 2009 fiscal period for the vehicle ^ Line 3: Total number of days the vehicle was leased in your 2009 and previous fiscal periods ^ Line 4: Manufacturer's list price ^ Line 5: The amount on line 4 or ($35,294 + GST* and PST, or HST* on $35,294), whichever is more ^ multiplied by 85% = ^ Line 6: [($800 + GST* and PST, or HST* on $800) multiplied by line 3] ^ divided by 30 = ^ minus line 2: ^ = ^ Line 7: [($30,000 + GST* and PST, or HST* on $30,000) multiplied by line 1] ^ divided by line 5 = ^ * Use a GST rate of 5% or HST rate of 13% starting January 1, 2008. Eligible leasing cost (line 6 or 7, whichever is less) (enter this amount on line 8 of Chart A above) ^